In a troubling sign for the casual dining chain, TGI Fridays has abruptly closed nearly 50 restaurants across the U.S. within the past week. This wave of closures comes amid reports that the company is preparing to file for bankruptcy.
According to the TGI Fridays store locator, the chain now has only 164 restaurants operating, down from 213 last week. This marks the largest number of closures since January, when 36 underperforming locations were shuttered.
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While TGI Fridays has not officially commented on the closures, local media reports indicate that restaurants in several states, including California, Ohio, New York, New Jersey, Florida, and Missouri, have been affected. In some cases, the closures represent a complete exit from certain cities, such as Columbus, Ohio, and Buffalo, New York.
The drastic downsizing comes as TGI Fridays reportedly faces significant financial challenges. Bloomberg recently reported that the chain is seeking a cash infusion from lenders to stay afloat while navigating a potential Chapter 11 bankruptcy process.
Industry experts suggest that TGI Fridays may use bankruptcy to restructure its debt, reject leases for unprofitable locations, and potentially seek a buyer for parts of its business. The chain has been struggling with declining customer traffic, changing consumer preferences, and increased competition from lower-cost fast-food options.
READ: Red Lobster Continues Cuts, Closes 23 More Restaurants Amid Bankruptcy, 3 In Florida
This news follows a trend of bankruptcy filings within the casual dining sector, with chains like Red Lobster and Buca di Beppo also facing difficulties. Inflation and shifting consumer spending habits have forced many restaurants to re-evaluate their operations and make difficult decisions.
The future of TGI Fridays remains uncertain as it grapples with these challenges. Whether the chain can successfully restructure and emerge from a potential bankruptcy with a smaller, more sustainable footprint remains to be seen.
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